HJ Shipbuilding & Construction Secures Qualification to Enter $20 Billion US Navy MRO Market

Third Korean Shipbuilder, First Mid-sized Company to Sign US Navy Ship Maintenance Agreement
First Marine Defense Firm to Prove Capabilities and Technology, Paving the Way for K-Defense's Resurgence

HJ Shipbuilding & Construction (CEO Yoo Sangcheol) has set sail on the US Navy vessel MRO (Maintenance, Repair, and Overhaul) project. By qualifying to participate and signing a ship maintenance agreement with the US Navy, the company has fired the starting gun for entering the market.

Last week, HJ Shipbuilding & Construction was selected by the US Navy as a candidate to sign the MSRA, and has now concluded the Master Ship Repair Agreement (MSRA) with the US Navy Naval Supply Systems Command (NAVSUP).

With this agreement, HJ Shipbuilding & Construction has secured the qualification to participate in all MRO project bids for US Navy support and combat ships over the next five years.

The MSRA is an agreement signed by the US Navy with companies whose capabilities in maintaining, repairing, and overhauling US Navy vessels have been officially verified. It essentially grants the right to participate in US Navy vessel MRO projects.

Without this qualification, the scope of business is limited to the maintenance of non-combat vessels such as logistics support ships. However, obtaining the MSRA allows participation in the maintenance, repair, and overhaul of major US Navy vessels, including combat ships and escort ships. To qualify, companies must meet the US Navy's stringent standards in quality, technology, production facilities, supply chain, security systems, and safety management, and pass a rigorous evaluation process.

US Navy Logistics Support Ship Amelia Earhart.

To obtain the MSRA, HJ Shipbuilding & Construction submitted its application in March last year, underwent a financial evaluation and on-site inspection, and successfully passed the final port security assessment, the last hurdle, on the 5th of this month. As a result, the company received final notification on the 16th that it had been selected as a candidate for the agreement by the US Navy Naval Supply Systems Command and successfully concluded the agreement on the 19th.

Even before signing the MSRA, HJ Shipbuilding & Construction had already demonstrated its capabilities by winning an MRO contract for a 40,000-ton class logistics support ship ordered by the US Navy in December last year. During the on-site inspection and port security assessment, the company was highly praised by the evaluation team as the optimal shipyard to carry out US Navy vessel MRO projects, signaling early on that it would obtain the MSRA qualification.

This qualification is significant because it represents official recognition from the US Navy, which possesses the world's most advanced vessels and naval power, of HJ Shipbuilding & Construction's capabilities, technology, quality, and reliability in carrying out MRO projects. It is expected to greatly support the company's overseas business development for vessels in which it excels, such as high-speed ships and high-speed landing craft, as well as its entry into the global MRO market.

With the signing of the MSRA, HJ Shipbuilding & Construction has established a bridgehead for entering the US Navy market, which is the world's largest MRO market with an annual scale of 20 trillion won. The company plans to further strengthen its trust relationship with the US Navy through follow-up orders after the first logistics support ship, as well as by ensuring high quality and on-time delivery.

A representative from HJ Shipbuilding & Construction stated, "By signing the MSRA with the US Navy, our shipbuilding technology has been recognized in the global market, and we are now able to fully participate in the US Navy's major vessel MRO market. We will do our utmost to execute MRO projects successfully and continue to build a relationship of mutual trust and cooperation with our ally and client, the US Navy, thereby enhancing the status of K-Defense."